9 Of Forbes' 20 Most Important Questions In Business

Forbes.com just released a very interesting article headlined "The 20 Most Important Questions In Business." It's great that they shared this with the rest of us. There are many budding entrepreneurs all over the world. Even employees can benefit from learning how overall business strategy will help them continue to have employment.

Basically it mentions how we don't really have all the answers. But the key to success in business is to ask the right questions. Studies estimate that just two-thirds of all start-ups survive the first two years, and less than half make it to the fourth.

Here are some highlights of the article about the question entrepreneurs have to answer in order to keep their businesses afloat. This is basically the shorter version of the article with some of my comments on the side:

What is your value proposition?

Without a need, there is no incentive for customers to pay. And without sales, you have no business. Period.

What differentiates your product from the competitors'?

If you want to win in business, you need to offer something tangibly valuable that the competition doesn't.

How much cash do you need to survive the early years?

Three words: Mind the cash.

What are your strengths?

Figure out what you're good at and stick to it. Don't go chasing red balloons

How big is the threat of new entrants?

The trick: building a loyal following before new competition steps in for a share of your market.

How much power do your suppliers have?

Basic rule of thumb: The fewer the number of suppliers, the more sway they have.

Does the business scale?

Think service businesses, where the need for people grows along with revenues.

What price will your customers pay?

Get this answer wrong and you could leave bags of money on the table--or worse, send customers running into the arms of the competition. Do your homework before you start selling

How committed are you to making this happen?

Fair warning: If you want to run the show, get ready to give everything--and then some.